US scrap market sentiment has worsened before the start of July trading, expected after the Independence Day holiday. Prices are expected to record significant falls for the third consecutive month.

Although values have recovered in Turkey, the largest export destination, this is seemingly not going to prevent a decline in US domestic scrap prices. 

Amid weak order books, reduced buying programmes and decreasing hot rolled coil prices, the fall in scrap values is expected to reach $150/gross ton for prime grades.

A US scrap supplier explains: “Although sentiment has improved due to the sharp price increases seen in Turkey recently, support from other destinations is lacking as the situation on the West Coast is different. The activity in Turkey may support obsolete grade pricing to some extent, but not prime grades.”